Examples from the Past
Below, an interview with a private investor that did several investments and a few case examples are given of entrepreneurs that found investors and have grown.
Interview with an investor
What is it that you are committed to the BiD Network and her entrepreneurs?
'I am of the opinion that I can support SME development in the South by sharing my expertise and by providing access to finance to promising entrepreneurs. I see this as an important personal objective. The BiD Network Foundation offers a platform to get in touch with the entrepreneurs I am looking for.'
In which BiD Network entrepreneurs did you invest?
'In 2006 I invested in Stewart Craine and his business called Barefoot Power (see below). Last year’s BiD Challenge I decided to go ahead with another two entrepreneurs: Peter Meijer and Victor Mfinanga. Peter is starting up a workshop in Malawi. He is going to manufacture bicycle carts as a mean for transportation, as mobile shop or even as an ambulance. Peter knows Malawi very well, saw a clear opportunity and is highly dedicated to make this business a success. I will provide Peter a loan of about 23,000 US dollar.
One of my friends went to Tanzania for work. He did me a favour to also visit Victor Mfinanga whom I already met in the Netherlands. My friend reported possitively on Victor, proving my gutt feeling to be right. I am currently negotiating with Victor on a 20,000 US dollar share in his milk business. I believe that Victor is the right man to make it happen.'
What do you expect from the investments?
'Life is most easy without any expectations. I do not have expectations on specific financial returns. It’s not for my pension so to say. Nevertheless, the repayments and financial returns obviously relate to my possibilities to do new investments and also to the confidence I have in the entrepreneurs I invested in. In the mean time, any appealing proposition of BiD Network will be gratefully received!'
Case Examples
Barefoot Power was set up in January 2005, selling low-cost access to renewable electricity, using an innovative business model that builds a power system gradually, staggering investments in accordance with kerosene expenditure cashflow from villagers.
They operate a nimble, dynamic, low cost company that provides affordable services to 1 million people in developing countries by 2011.
Barefoot power has received equity finance, grant finance and debt finance. On the business side, barefoot power has partnerships with 5 MFI’s, 5 distributors, and 18 organizations (mainly Chinese) on the production and supply side. www.barefootpower.com
Quote from an investor: 'A sympathetic plan to provide poor people using polluting and expensive kerosene lights with affordable and clean electric lights and eventually with complete power systems. It were the commitment and drive of entrepreneur Stewart Craine that made me decide to take a share of 10,000 US dollar in Barefoot Power. Recently I invested another 20,000 in the company.'
The RagBag produces and exports quality bags, wallets and other fashionable products made from recycled plastic bags in the slums of Delhi. The production is done by rag pickers, collection centers where people wash and clean the bags and fabricators who make them into new products.
Ragbag has a turnover of over U$D 150.000 and is employing over 100 people directly and they are ready for the next step. www.ragbag.eu
“El Castillo del Cacao" (The Cocoa Castle) was set up in 2005. It is producing some of the finest chocolate in Nicaragua, made with locally harvested organic cacao and a variety of nuts and dried fruits, serving the local market and eventually seeking export possibilities to the growing ¨variety chocolate market¨ in the west.
With the (financial) support of industry experts, local NGO’s and international investors, they have managed to set up the factory, the logistics and improve the quality.
Currently, the products are a success on the local market as it is distributed to all the bigger supermarkets throughout Nicaragua, securing turnover and income. They are employing 11 people directly and some 75 people indirectly. www.elcastillodelcacao.com
Shokay produces and exports quality cashmere wool from Chinese yaks. After visiting several local mountain villages in West China, Marie So and her 2 business partners saw an opportunity for a business model built around Yak wool. Making the Yak wool, thus far without use, into a profitable commodity would greatly improve the standard of living of the herder families in West China.
Shokay benefits 557 families through its activities, by generating income and investing a large part of Shokay profit in the development of the local community.
Shokay products are sold in 50 stores in the United States. Mary So and her team have extended the assortment with Shokay baby, a complete line of baby clothes from Yak wool, and accessories. www.shokay.com
These are just a few short stories. In case you are interested to find your own opportunities:
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